Electric Vehicle Stocks to Watch: Tesla Inc (NASDAQ:TSLA), Nio (NYSE:NIO),
One of the most remarkable stories of the year as far as the stock market is concerned has been the gains recorded by the electric vehicle stock Tesla Inc (NASDAQ:TSLA). It is the biggest electric car maker in the world and recently its share price shot past the $2,200 a share mark. In light of such gains, it is important to have a closer look at the company and its operations.
Major Factors to Watch
In addition to that, speculation that the stock is going to be soon added to the S&P 500 has also been one of the reasons behind the rise. Investors piled on to the stock following the update and that has been a contributory factor to its 300% surge in the year so far.
On August 11, the company announced that it was going to go for a five for one share split and added that shareholders on record as on August 21 were going to get four extra shares for each share they own. That resulted in another rally in the stock and since then the Tesla stock surged by as much as 45%.
A share split in itself does not raise the value of the company since it is often used by companies as a way of making the share more affordable for shareholders. Generally, it is done after the value of a share goes beyond a certain point. Tesla has also been performing favorably on the deliveries front and in July, it managed to clock deliveries to the tune of 90,891 cars.
Another electric vehicle stock that has managed to perform impressively this year is that of Nio Inc – ADR (NYSE:NIO), the Chinese electric vehicle manufacturer which is regarded as a Tesla rival. The stock has surged by as much as 240% this year so far and one of the reasons for that was the fact that NIO managed to raise financing so as to continue its operations.
William Li, the Chairman and founder of the company recently stated that NIO is also looking to enter new markets in the second half of 2020. It might start with an entry into Europe and then expand into other markets in the coming years.